Morocco’s foreign trade gap widens 5.5% y/y in Q1

By bne IntelliNews April 20, 2016

Morocco’s foreign trade deficit expanded 5.5% y/y to MAD37.3bn in the first three months of the year amid rising both exports and imports, signalling sustained economic activity, private consumption and industrial demand, preliminary data from the Office de Change showed.

Total imports (CIF) rose 3.5% y/y to MAD93.6bn in the first quarter of the year lifted by increasing purchases of equipment (up 16.3% y/y), end consuming goods (up 15.8% y/y), semi-finished goods (up 10%) and food imports (up 7% y/y).

 In 2016, Morocco expects the agro output to decline and thus food imports to expand. Total imports consequently will resume growth, weighing on FX reserves and the CA balance. The pattern will partially be softened by sustained decline in oil prices.

Exports (FOB) increased just 2.2% y/y to MAD56.4bn in Q1 amid subdued EU demand for Morocco’s value-added products. Passenger cars exports climbed 10% y/y while those of agro items rose 6% y/y in Q1. Phosphates sales, however, remained in the red falling 5% y/y to MAD9.2bn.

As to Morocco’s tourism income, it rose 6.5% y/y to MAD12.1bn in January-March in good news for the country‘s services sector and related contribution to the current account balance. The country is also benefiting from the tourism outflow from neighbouring Tunisia. Net transfers from Moroccans working and residing abroad also increased 4% y/y at MAD14.5bn in January-March. The EU-based diaspora remains the key source of remittances. As to net FDI, it fell 25% y/y to MAD5.14bn in January-March due to high base effect.

 

Related Articles

EBRD prepares to welcome Lebanon into fold

The EBRD is set to welcome its 66th member country and the fifth from the southern and eastern Mediterranean (SEMED) region once the Lebanese government finalises the last steps of the joining ... more

Russia and Saudi Arabia to launch joint projects worth $3bn in 2017

Russia and Saudi Arabia will launch joint projects worth $3bn by the end of 2017, the speaker of Russia’s Federation Council Valentina Matviyenko said at talks with members of the Russian-Saudi ... more

Egypt’s President El Sisi to announce state of emergency after church bombings

Egypt’s President Abdel-Fattah El Sisi announced in a televised speech his intention to impose a nationwide state of emergency for three months following two deadly bomb attacks on Christian ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Dismiss